PayPal Stories Archive

Since 2008, PayPal Credit–and eight years prior to that with BillMeLater–has built products and tools that provide alternative financial options for millions of consumers. We’re proud to share that PayPal Credit – a flexible, open-end, revolving line of credit available as funding instrument in the PayPal wallet – has reached a total of $50B in total payment volume (TPV) in the U.S. since the 2008 acquisition of Bill Me Later. In 2018 alone, PayPal Credit TPV in the U.S. was at nearly $10 billion, and more than $2 billion in November and December combined. Our PayPal Credit business in Germany and the U.K. also continue to see significant growth year-over-year.

 

Consumers are increasingly seeking access to non-traditional financial tools. From everyday purchases to emergency expenses, people are taking advantage of alternative options in financial technology. In fact, a recent report from the Federal Reserve estimates that 40% of all Americans are not financially able to cover a $400 emergency expense, while nearly 80% of full-time workers in the U.S. have said they live paycheck to paycheck, according to a recent report from CareerBuilder. 

 

At PayPal, we’re committed to using our platform to democratize financial services and break down barriers to make it easier for people and businesses to manage their financial lives and pursue their goals. PayPal Credit offers a flexible, revolving line of credit available in the PayPal wallet that customers can use again and again at any merchant that accepts PayPal Credit, without the need to reapply for each transaction, bringing in billions of dollars in open to buy to PayPal merchants[1].

 

PayPal Credit has become an important tool for millions of people who seek greater financial flexibility and choice: Fifty-eight percent of U.S. PayPal Credit users surveyed say it helps them make purchases they wouldn’t have been able to otherwise afford. And 78% say being able to pay for purchases over time makes it possible to buy the items they need today[2]. These statistics aren’t just numbers, they represent individuals and families looking for alternative financial options, potentially during moments of uncertainty or just for every day needs.

 

PayPal Credit customers always have the ability to leverage our promotional no interest offer on purchases of $99 or more if paid in full in 6 months. Our PayPal Credit customers also have access to our Easy Payments offer that allows customers of participating merchants to make payments over time, in substantially equal monthly payments.

 

One great example we like to talk about is AutoAnything, one of America's largest and fastest growing online retailers of specialized automotive products. Customers who make purchases using PayPal Credit typically spend 35% more per transaction than other forms of payment in their PayPal wallet. With a mission to provide each customer with the best possible shopping experience for automotive accessories, PayPal Credit allows AutoAnything customers the option to pay over time, so they can buy those critical items when they need them most. PayPal Credit has proven to be a useful resource for AutoAnything customers: Nearly a third of all PayPal Credit customers are repeat shoppers on AutoAnything.

 

Another great example is Vivid Seats, the largest independent ticket marketplace in North America. Vivid Seats recognizes that the event experience begins long before a customer steps inside an arena or concert hall. It began offering PayPal Credit in 2016, and now sees higher average order values when customers choose to use PayPal Credit. PayPal Credit transactions by Vivid Seats’ customers increased 11% between 2017 and 2018, and we’re looking forward to continuing to help bring those memorable moments to its customers.

 

PayPal Credit has enabled AutoAnything and Vivid Seats and millions of merchants from large enterprise brands to mid-size and small companies—to attract new customers, drive more sales, and provide shoppers with greater financial flexibility. When U.S. middle-market businesses add the PayPal Credit button at checkout,  they generally see an average 15% increase in incremental sales, starting within the first 3 months [3]. And 56% of U.S. PayPal Credit users surveyed say they are much more likely to shop at a retailer again if they offer PayPal Credit [4]. Retailers like HP, 23andMe, Auto Anything, and Vivid Seats are giving their customers the option to use PayPal Credit, so they can buy items when they need them, and pay over time.

 

PayPal’s portfolio of products, including PayPal Credit, are driven by our values and our mission to democratize financial services. We’re proud to be celebrating this milestone with our customers, the merchants we partner with, and our valued PayPal employees.

Darrell Esch, VP, Commercial Officer - Credit, PayPal